WEBVTT - Single Best Idea with Tom Keene: Robert Kaplan and Randy Schwimmer

0:00:02.360 --> 0:00:12.440
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, single.

0:00:12.240 --> 0:00:15.960
<v Speaker 2>Best idea and a very busy day. Not his disjoint

0:00:16.120 --> 0:00:19.640
<v Speaker 2>is what we saw two days ago, which was absolutely extraordinary.

0:00:20.120 --> 0:00:22.040
<v Speaker 2>There was more of a pattern to it, There was

0:00:22.120 --> 0:00:24.920
<v Speaker 2>more of a cadence to the day, the headlines of

0:00:24.960 --> 0:00:26.680
<v Speaker 2>the war and all. Just as we went to tape

0:00:26.720 --> 0:00:31.400
<v Speaker 2>the Iranians responding to President Trump's fifteen point piece plan.

0:00:32.040 --> 0:00:36.960
<v Speaker 2>Wayne Sanders joined us from Bloomberg Intelligence. Hugely experienced in

0:00:37.040 --> 0:00:40.800
<v Speaker 2>the new technology of our United States Army. Some very

0:00:40.840 --> 0:00:45.120
<v Speaker 2>difficult questions with Wayne Sanders on that Robert Caplan was

0:00:45.120 --> 0:00:47.919
<v Speaker 2>with us, a part owner of the Kansas City Royals.

0:00:47.920 --> 0:00:51.280
<v Speaker 2>It was good to talk Royals baseball with mister Kaplan,

0:00:51.360 --> 0:00:55.160
<v Speaker 2>of course, the former Dallas Fed President. An update from

0:00:55.240 --> 0:00:58.320
<v Speaker 2>Robert Kaplan on the look before the war.

0:00:58.840 --> 0:01:02.560
<v Speaker 3>If we talked literally just a month ago, we would

0:01:02.560 --> 0:01:05.039
<v Speaker 3>have said, we're set up for a strong year of

0:01:05.040 --> 0:01:08.880
<v Speaker 3>growth in twenty twenty six. Tax and centers, regulatory reform,

0:01:08.959 --> 0:01:13.679
<v Speaker 3>AI data center power boom, and I think the Fed

0:01:13.840 --> 0:01:16.400
<v Speaker 3>was hopeful in the back half of the year that

0:01:16.600 --> 0:01:18.959
<v Speaker 3>headline inflation would tail off a bit, so they might

0:01:18.959 --> 0:01:22.440
<v Speaker 3>be able to cut rates once or twice obviously because

0:01:22.440 --> 0:01:24.759
<v Speaker 3>of what's going on in the Middle East. I think

0:01:24.800 --> 0:01:28.640
<v Speaker 3>they're going to need to step back, that's the right

0:01:28.680 --> 0:01:30.919
<v Speaker 3>thing to do and let this unfold. Then the market

0:01:31.000 --> 0:01:31.880
<v Speaker 3>is sort of backed off.

0:01:31.920 --> 0:01:35.600
<v Speaker 2>Also Robert Kaplan of Golden Sachs, and of course the

0:01:35.640 --> 0:01:40.240
<v Speaker 2>former president of the Dallas Fed. Paul's particularly been way

0:01:40.280 --> 0:01:43.360
<v Speaker 2>out front on what in God's name is going on

0:01:43.680 --> 0:01:47.160
<v Speaker 2>in private credit. We had any number of good voices,

0:01:47.200 --> 0:01:50.360
<v Speaker 2>including Gary Gensler in the other day, the former chairman

0:01:50.400 --> 0:01:54.320
<v Speaker 2>of the se C. We had a just piercing conversation

0:01:54.400 --> 0:01:58.120
<v Speaker 2>today with Randy Schrimmer with Churchill Ventures and you know,

0:01:58.200 --> 0:02:00.880
<v Speaker 2>to speak to him about the state of private credit

0:02:01.080 --> 0:02:02.960
<v Speaker 2>and update from Randy Schwimmer.

0:02:03.400 --> 0:02:05.600
<v Speaker 4>At the large end of the market, they're being told

0:02:05.920 --> 0:02:10.560
<v Speaker 4>that liquidity in private credit is very similar, it's converging

0:02:10.600 --> 0:02:14.400
<v Speaker 4>with liquidity in public credit. The problem is, we Churchill

0:02:14.440 --> 0:02:17.200
<v Speaker 4>and you know this are at the core middle market,

0:02:17.240 --> 0:02:21.399
<v Speaker 4>which is very illiquid. The good news about being very

0:02:21.440 --> 0:02:24.960
<v Speaker 4>liquid is that it is an efficient alternative to the

0:02:25.000 --> 0:02:27.800
<v Speaker 4>liquid market that is trading up and down. If you

0:02:27.960 --> 0:02:32.000
<v Speaker 4>try to impose liquidity on ill liquid asset class, you're

0:02:32.000 --> 0:02:35.280
<v Speaker 4>going to create expectations that are being dashed, and so

0:02:35.400 --> 0:02:38.520
<v Speaker 4>retail investors are confused. They think, oh, we can get out,

0:02:38.919 --> 0:02:39.639
<v Speaker 4>No we can't.

0:02:40.560 --> 0:02:43.800
<v Speaker 2>Randy Schwimmer just a brilliant conversation that combined with what

0:02:43.840 --> 0:02:47.560
<v Speaker 2>you heard from mister Gensler, I think is just brilliant

0:02:47.600 --> 0:02:53.320
<v Speaker 2>on this whole retalization of illiquid investments. Well, this will

0:02:53.360 --> 0:02:55.920
<v Speaker 2>be a theme for us, I'm sure as we dive

0:02:56.000 --> 0:02:59.959
<v Speaker 2>into the summer. The news flows is just absolutely extraordinary.

0:03:00.080 --> 0:03:02.920
<v Speaker 2>On our podcast, We're Out an Apple and Spotify and

0:03:03.000 --> 0:03:07.840
<v Speaker 2>YouTube podcasts, a single best idea